The amount depends on your child's age, target types of schools and locations, and how much of the cost you want to save for.

For example, if the rate of return on the college savings is estimated to be 6% per year, then saving $230 per month for 15 years at that rate of return results in total savings of about $65,000. Four-year public university costs in California average around $110,000, as of 2024. But costs are likely to increase in the future. If those costs increase at 4% per year, the cost in 15 years will be about $198,000. Given these assumptions, this saving plan would cover about one-third of those future costs.

The key variables are: your child's current age (the earlier you start, the less you need to save monthly), your target coverage (many families aim to cover one-third to one-half of projected costs), target location and type of school, current education costs, expected increases in costs, and expected investment growth.

Instead of guessing, we recommend building a personalized plan based on your specific situation.

A Robo-advisor is typically a website and/or a mobile app that is run by a registered investment adviser. Their clients sign up for an account and deposit money. The robo-advisor asks questions to determine the client's risk tolerance and then invests the client's money accordingly, performing certain tasks automatically such as rebalancing the client's portfolio and optimizing taxes via strategies like tax loss harvesting.

Robo-advisors and Centoic serve different needs:

Robo-advisors typically:

• Manage your investments for you (you give them control of your money)
• Charge ongoing fees based on how much you deposit (known as "assets under management"). Fees are typically in the range of 0.25% per year.
• Provide generic portfolio allocation based on your risk tolerance
• Offer limited personalization for complex family situations
• Focus on investment management, not comprehensive planning

Centoic's approach:

• Provides guidance while you keep full control of your accounts
• Charges flat, project-based fees (advisor) or subscription fees (app), never a percentage of your savings
• Creates personalized plans based on your specific goals, timeline, and schools
• Offers ongoing recommendations that adapt to changing circumstances (app)
• Focuses specifically on education savings (it's all we do!)

The key difference: We provide the roadmap; you drive. Your money stays in accounts you choose at institutions you trust. We never manage your assets, so our only incentive is helping you reach your education savings goals.

A 529 plan has a minimal impact on financial aid eligibility. The benefits of saving typically outweigh the impact.

Here's how it works:

When owned by a parent or dependent student, 529 assets are currently counted as parental assets on the FAFSA at a maximum rate of 5.64%. Assuming this rate is in place, a $50,000 529 balance would reduce aid eligibility by at most $2,820. The tax free earnings over time are likely to exceed that reduction in aid.

For example, if $175 per month was deposited in the 529 account over 15 years at a 6% rate of return, the resulting end balance of about $50,000 would include about $18,000 of investment gains that could be used tax-free for eligible education expenses.

Important recent changes: Starting with the 2024-25 FAFSA, distributions from grandparent-owned 529 plans no longer count as student income. This makes grandparent contributions more attractive than before.

The bigger picture: Financial aid calculations are primarily driven by income, not assets. And every dollar you save is a dollar you won't need to borrow at higher interest rates later.

It depends on your situation, but most families benefit from some level of guidance, even if they don't need traditional ongoing asset management.

You can likely go it alone if:

• You have one child with a straightforward timeline
• You're comfortable choosing and adjusting investments over time
• Your overall financial picture is relatively simple

Professional guidance becomes more valuable when:

• You have multiple children at different ages
• You're unsure how much you actually need to save
• You want to coordinate education savings with other goals
• You'd benefit from ongoing investment recommendations as markets and costs change

The real question is what kind of help you need. Traditional advisors who manage 529 accounts often charge ongoing fees based on your assets. These fees can add up over time. Free online calculators can do the math, but they typically don't provide a personalized strategy and can't provide investment advice.

Centoic offers a middle path: personalized guidance without taking control of your money. You get a clear plan tailored to your family, you implement it wherever you choose, and we charge transparent fees for advice, not a percentage of your savings.